Chap 10 Business Model and Start-up Quiz

What are the four essential elements of a business concept?

• The value proposition, the customer definition, the distribution channel, the product/service

• The product/service, the customer, the distribution channel, the value proposition

• The customer definition, the value proposition, the product/service, the distribution channel

• The distribution channel, the value proposition, the customer definition, the product/service

What are the three essential elements required to test a potential business idea?

• What is the product and/or service, who is the customer likely to be, what is the benefit of your product/service

• Who is the customer likely to be, what is the benefit of your product/service, what is the product and/or service

• Who is the customer likely to be, what is the product and/or service, what is the benefit of your product/service

• What is the benefit of your product/service, what is the product and/or service, who is the customer likely to be

What are the most popular legal structures for start-ups?

• Sole trader, Partnership, Limited liability companies

• Sole trader, Partnership, Corporation

• Sole trader, Corporation, Limited liability companies

• Sole trader, Franchise, Limited liability companies

What is the primary purpose of a social enterprise?

• To compete with other businesses

• To reinvest profit for social purposes of the business or community

• To maximize profit for the owners

• To provide employment opportunities

What are the sources of funding for a start-up?

• Personal savings, Venture capital, Bank loans

• Personal savings, Angel investors, Bank loans

• Personal savings, Money from family and friends, Bank loans

• Personal savings, Crowdfunding, Bank loans

What is the legal structure in which two or more individuals invest money, skills, and other resources, and share profit and loss?

• Franchise

• Limited liability company

• Sole trader

• Partnership

What is an enterprise in its early stage of operations or trading called?

• A mature enterprise

• A declining enterprise

• A start up enterprise

• A rebirth enterprise

What is a business that operates under a license granted by a company to market its products or service in a particular territory called?

• A partnership

• A franchise

• A sole trader

• A corporation

What is the process of using creative skills to identify a new innovation called?

• Opportunity recognition

• Market research

• Feasibility analysis

• Financial projections

What are the three key issues in the start-up phase of a business?

• Finding customers, Building a structure, Financing

• Developing a business plan, Acquiring resources and personnel, Testing concept feasibility

• Opportunity recognition, Testing concept feasibility, Developing a business plan

• Market research, Feasibility analysis, Financial projections